In this final work describes the analysis of the development of small businesses on the Croatian territory. This paper seeks to answer the following questions, which is the subject of this paper: to define small and medium enterprises, such as the characteristics of entrepreneurship in the Republic of Croatia, such as the analysis of the development and importance of small businesses in the Croatian economy? The aim of this paper is to investigate the course of development of SMEs in Croatia through history to the present, to determine whether monitors the development of enterprise development trends in Europe and highlight the importance of small business in the Republic of Croatia. The conclusion is that the small business sector in the Republic of Croatia achieve dynamic growth and a large share of employment, but remains a need to address barriers to the domestic market, in parallel with that began the intense activity in the single European market.